The Board of Directors approves the results of the first half of 2015
Turnover stable compared to 2014 and in line with expectations. Significant growth for Carraro Agritalia (+50%)
Net improvement of margins compared to the same period last year.
Cost reduction process continues, both at the industrial level, thanks to rationalisation of production layouts and partnerships with suppliers, as well as in terms of overheads, thanks to the new organisational structure.
For Drivetech a further decline of volumes is expected in the second half with an impact on the margins of the entire Group.
Group Consolidated Turnover in the first half of 2015 amounted to 370 million Euros, up 5.8% from 349.7 million Euros in the first half of 2014, excluding the effects of the sale of the MiniGears plants; compared to the financial statement figure of the first half of 2014, amounting to 371.4 million Euros, revenue was substantially in line (-0.4%). The mechanical business areas (Carraro Drivetech and Agritalia) generated an increase in sales of 5.2% (net of the sale of Mini Gears plants) with a particularly strong performance of Agritalia (+50%).
Consolidated EBITDA at 30 June 2015 net of non-recurring costs amounted to 25.9 million Euros (7% of turnover), up by 37.6% (homogeneous figure at 30 June 2014 included in the scope of consolidation amounted to 18.9 million Euros); the accounting figure amounted to 22.5 million Euros (6.1% of turnover), an increase of 16.8% compared to 19.2 million Euros (5.2% of turnover) in the same period of 2014. EBITDA of the mechanical business areas net of non-recurring costs - at 30 June 2015 stood at 24.5 million Euros (6.7% of turnover), a decrease of 8.3% compared to the first half of 2014 (homogeneous figure included in the scope of consolidation) when it stood at 26.7 million Euros (7.6% of turnover); the accounting figure amounted to 21 million Euros (5.7% of turnover), a decrease of 21.2% compared to 26.7 million Euros (7.6% of turnover) in the first half of 2014.
Consolidated EBIT at 30 June 2015 net of non-recurring costs amounted to 12.1 million Euros (3.2% of turnover), up by 84.7% compared to the homogeneous figure included in the scope of consolidation at 30 June 2014 which amounted to 6.5 million Euros; the accounting figure amounted to 8.5 million Euros (2.3% of turnover) up 67.1% compared to the 5.1 million Euros (1.4% of turnover) as at 30 June 2014. EBIT of the mechanical business areas net of non-recurring costs - stood at 13.2 million Euros (3.6% of turnover), a decrease of 23.1% compared to the same period of the previous year (homogeneous figure included in the scope of consolidation), when it stood at 17.2 million Euros (4.9% of turnover); the accounting figure amounted to 9.7 million Euros (2.6% of turnover) down 43.3% compared to the 17.2 million Euros (4.9% of turnover) of 30 June 2014.
Group Earnings Before Tax at 30 June 2015 were negative at 167 thousand Euros (0% of turnover) compared to a negative value of 4 million Euros (-1.1% of turnover) in the first half of 2014; due to taxes for the period equal to 5.7 million Euros (1.5% of turnover), the first half of 2015 closed with a net loss of 5.8 million Euros (-1.6 % of turnover), compared to a loss of 10.1 million Euros (-2.7 % of turnover).
Net financial position at 30 June 2015 was negative at 247 million Euros, compared to 224.3 million Euros at 31 December 2014, due to the expected effects of reabsorbing assets conducted at the end of 2014 on working capital (281.4 million Euros at 31 March 2015)
As from the second quarter, the target markets recorded a significant reversal of trend, resulting in a contract of the order portfolio for Carraro Drive Tech which, for the second half of 2015, will determine a significant reduction in turnover and profitability, in line with the trends of the main customers.
For Agritalia and Santerno, turnover and margin expectations are confirmed. In particular for Santerno, in June the South African projects were started.
In light of turnover in the coming months, the Group will adopt the appropriate flexibility levers in order to maintain an adequate balance in the cost structure.
"In the first half of the year, the Group achieved the same level of sales as last year but with a significant improvement in margins. This is the result of the actions undertaken to ensure careful control of costs, both at the industrial level as well as in terms of overheads, thanks to new organisational structure. - said Enrico Carraro, Group Chairman - For the second half of the year, on the other hand, we are seeing a decrease in volumes in the main markets related to the core business, to which we are already reacting in order to avoid even more significant operating and financial impacts. As a consequence, we are renegotiating our loan agreements with our financial partners in order to reformulate them in line with the update of the current Business Plan. Despite the current economic situation, in the medium-long term, an optimistic view of our business, based on the solidity of our markets and the widespread market penetration of our brands,is confirmed"